The database would have included retirees' names, their monthly gross pension payment and some employment history, but would not have included information on beneficiaries or survivors who receive a monthly allowance.

The about-face came despite some calls that it's the public's right to know how much pensioners are earning from the state.

While the debate over the legality of such a database simmers, the CalPERS system is getting anything but rave reviews lately.

Kampe wants city employees to have the option of getting out of CalPERS altogether, calling the agency a "monopoly supplier" that sets rules at a relatively arbitrary basis and changes them somewhat at will.

"The result is they really cause a lot of fluctuations in city budgets that hurt services that we're able to supply to our citizens," Kampe said.

Monterey City Manager Fred Meurer said his city has been forced to ratchet back retirement benefits for employees, but said they understand the issue and are helping to try and solve it.

"To the credit of our employees, they not only agreed to postpone raises that they had fairly negotiated years ago when times were better, they agreed to also pay a part of the city's share of PERS," he said.